Kuaishou Technology’s shares fell 10.1% on Thursday to HK$34, marking the lowest level in nearly four years as weak second-quarter earnings and a reduction in Tencent’s stake compounded investor concerns.
The decline extended a broader slump in the stock, which had already retreated sharply over the past month following Tencent’s decision to trim its holding in the company. While Kuaishou management stated that Tencent’s stake reduction would not materially impact operations, the move contributed to negative market sentiment.
Second-quarter revenue rose just 1.4% year-over-year to RMB35.5 billion, a pace well below market expectations and signaling a sharp deceleration from prior periods. Gross profit declined to RMB18.3 billion from RMB19.5 billion in the same quarter of 2025, reflecting margin pressures amid heavy investments in artificial intelligence.
Kuaishou’s underperformance contrasted with the Hang Seng Index, which edged up 0.8% on the day. The company’s continued focus on AI-driven growth initiatives has raised questions about near-term profitability, despite long-term strategic positioning.
The stock, listed under ticker 1024, has now erased gains from earlier years, underscoring investor caution over growth sustainability in China’s competitive social media sector.
